Under Pressure: Nokia Cuts Q2 And Full-Year 2010 Outlook

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Nokia has gone ahead and updated its second quarter and full year 2010 outlook for both the Devices and the Services unit.

During Q2 2010, Nokia says ‘multiple factors’ are negatively impacting its business more than it had previously anticipated.

The company cites heated competition, particularly in the smartphone segment where it battles with Apple, RIM and a slew of Asian handset giants, the recent depreciation of the Euro and global pricing tactics as the main reasons for the updated outlook.

Nokia now says it expects Devices & Services net sales to hit the lower end or slightly below its previously expected range of €6.7 billion to €7.2 billion for the second quarter, primarily due to lower than anticipated average selling prices and mobile device volumes.

For the full year, Nokia says it continues to expect industry mobile device volumes to be up approximately 10% in 2010. At the same time, the company says it targets its own mobile device volume market share to be flat in 2010 compared to the year before.

Nokia will provide its second quarter results and more details on its 2010 full year outlook when it reports its Q2 2010 earnings on July 22.